Louisiana House Bill HB1183

Louisiana 2010 Regular Session

• Introduced: 3/29/10
• Refer: 3/29/10
• Report Pass: 4/22/10

Caption

Provides relative to the booking of crops

Impact

The legislation introduces requirements for notifying lenders about the sale of farm products, which may enhance the integrity of agricultural financing. Additionally, if a buyer fails to receive the pledged quantity of farm products, they must inform all creditors of the deficit within ten business days. This provision is expected to foster accountability among buyers and provide lenders with insights into potential financial risks associated with agricultural transactions. Overall, this bill could lead to better risk management practices in agricultural financing.

Summary

House Bill 1183 aims to enhance communication and transparency between parties involved in agricultural transactions. The bill mandates that persons buying farm products must notify all holders of perfected security interests in those products within five business days of the purchase. This notification must include details such as the amount of products purchased, the price, and the identities of both the buyer and the seller. By facilitating timely communication about transactions, the bill seeks to protect the interests of lenders and other stakeholders in the agricultural market.

Sentiment

The sentiment surrounding HB 1183 appears to be largely positive, especially among agricultural lenders and buyers who see it as a means to improve communication and reduce risks associated with farming operations. However, there may be some concerns from individual farmers about the added bureaucratic requirements and the implications of notifying multiple parties about their transactions. Generally, the stakeholders involved in agricultural finance are supportive of measures that promote transparency.

Contention

While the bill seeks to improve communication within the agricultural sector, there may be points of contention regarding the potential burden it places on smaller farmers and buyers who might find the notification requirements challenging to meet. Additionally, some stakeholders could argue about the effectiveness of mandated disclosures in improving overall agricultural operations. The requirement for a written notice of deficits may also raise concerns regarding the accuracy and potential disputes it could generate between buyers and sellers.